Business Strategy and Planning

Session 4
Vision and Mission Analysis
Chapter 5
How does it take form?
We can best understand vision and mission by focusing on a business when it is first
started. In the beginning, a new business is simply a collection of ideas. Starting a
new business rests on a set of beliefs that the new organization set for themselves.

When the set of beliefs about a business at its inception is put into writing, the
resulting document mirrors the same basic ideas that underlie the vision and
mission statements.

Vision and mission statements often can be found in the front of annual reports.
They often are displayed throughout a firm’s premises and are distributed with
company information sent to constituencies. The statements are part of numerous
internal reports, such as loan requests, supplier agreements, labor relations
contracts, business plans, and customer service agreements
Vision

What is it?

What is your Vision?

What do we want to become?
It is especially important for managers and executives in any organization to
agree on the basic vision that the firm strives to achieve in the long term.

A vision statement should answer the basic question,

“What do we want to become?”

A clear vision provides the foundation for developing a comprehensive

mission statement. The vision statement should be short, preferably one
sentence, and based on the input of as many managers as possible.
Analyzing Vision Statement

Where there is no vision, the people perish

Is this really so? Do corporations really care about vision?

Vision Statement Analysis
Starbucks Vision

“Starbucks strives to be the premier roaster and retailer of speciality coffee

globally.”

Do you think this is a good vision?

What do you think this vision statement lacks?

Vision Statement Analysis
Starbucks improved Vision

“To be the most well known speciality coffee, tea and pastry restaurant in the
world. Offering sincere customer service, a welcoming atmosphere and
unequaled Quality”

What do you think about this version?

What elements did they add here?

Some Examples of Visions
General Motors’ vision is to be the world leader in transportation products
and related services.

PepsiCo’s responsibility is to continually improve all aspects of the world in

which we operate—environment, social, economic— creating a better
tomorrow than today.

Royal Caribbean’s vision is to empower and enable our employees to deliver

the best vacation experience for our guests, thereby generating superior
returns for our shareholders and enhancing the well-being of our
communities.
What is our Business?
Drucker says that asking the question “What is our business?” is synonymous

with asking the question “What is our mission?” An enduring statement of

purpose that distinguishes one organization from other similar enterprises.

“The mission statement is a declaration of an organization’s “reason for

being.” It answers the pivotal question “What is our business?”

A clear mission statement is essential for effectively establishing objectives

and formulating strategies.

Analyzing Mission statement
A business mission is the foundation for priorities, strategies, plans, and work
assignments.

It is the starting point for the design of managerial jobs and, above all, for the
design of managerial structures.

The answer to this question is the first responsibility of strategists. Only

strategists can make sure that this question “What is our business?” receives
the attention it deserves and that the answer makes sense and enables the
business to plot its course and set its objectives.
Characteristics of a Mission Statement
1. Broad in scope; does not include monetary amounts, numbers, percentages,
ratios, or objectives
2. Fewer than 150 words in length
3. Inspiring
4. Identifies the utility of a firm's products
5. Reveals that the firm is socially responsible
6. Reveals that the firm is environmentally responsible
7. Includes nine components: customers, products or services, markets,
technology, concern for survival/growth/profits, philosophy, self-concept,
concern for public image, concern for employees
8. Reconciliatory
9. Enduring
The Process of Developing Vision and Mission Statements

A widely used approach to developing a vision and mission statement is

● First to select several articles about these statements and ask all
managers to read these as background information.
● Ask managers themselves to prepare a vision and mission statement for
the organization.
● A facilitator, or committee of top managers, should then merge these
statements into a single document and distribute the draft statements to
all managers.
● A request for modifications, additions, and deletions is needed next,
along with a meeting to revise the document.
The Process of Developing Vision and Mission Statements
● As all managers have input into and support the final documents,
organizations can more easily obtain managers’ support for other strategy
formulation, implementation, and evaluation activities.
● Decisions on how best to communicate the vision and mission to all
managers, employees, and external constituencies of an organization are
needed when the documents are in final form.
During the process of developing vision and mission statements, some
organizations use discussion groups of managers to develop and modify
existing statements.
Sometimes an outside person with expertise in developing such statements,
who has unbiased views, can manage the process more effectively than an
internal group or committee of managers
UCP’s Vision and Mission Analysis

“To become an internationally acclaimed University in teaching and research.”

To provide quality education to the youth of our nation in a stimulating and

conducive learning environment by equipping them with the intellectual and
technological tools necessary to meet the challenges of the future.
 Objective + Subjective
Chapter 1 and 5
( Session1,2,3,4,5)
Quiz 1 Introduction to Strategic
Tuesday 28th March,2023 Management

Vision and Mission

Statement